The currency market was moving too. The dollar’s low meant it notched its longest losing stretch since March. The yen clambered back above 140 and sterling hit a 15-month high as the Bank of England said the UK was coping with higher interest rates.
“If it doesn’t give the impression of the immediate cessation of these price pressures we could see a reversal of some of these more recent market moves,” Athey said, such as the rebound in the yen and drop in short-term U.S. bond yields. Saxo Markets strategists said traders were likely to continue to keep the odds for September and November rate hikes low if the core inflation rate decelerates as anticipated.
Overnight in Asia, Australia’s S&P/ASX 200 index rose 0.4 percent, while the bouncing yen knocked Japan’s Nikkei down 0.8 percent. Wall Street banks overall are expected to report higher profits as rising interest payments offset a downturn in dealmaking.